How Much Does A Serving Of Cake Cost You To Make?

Business By Adevag Updated 19 May 2010 , 1:13pm by jewelsq

Adevag Posted 18 May 2010 , 10:11pm
post #1 of 6

Just read the thread about how much you charge per slice. And I was wondering how much one serving of cake costs you to make? (approx.)
I am just a hobby baker but am hoping that in 5-10 years (i know, long time) could open something from home. Who knows how the market would look like then anyway. But when I make a cake and ONLY including costs of ingredients and support supplies, it ends up being $2/slice.
I know I choose ingredients with a cost that is above average, but still, how much is normal for a serving to cost?

5 replies
CWR41 Posted 19 May 2010 , 5:25am
post #2 of 6

.27 average.

carmijok Posted 19 May 2010 , 5:57am
post #3 of 6

So what's your time worth? The ingredients are what's in the cake--but YOU are the one that makes it. Your time and creativity all come into play. Your market, your competition, that's a consideration too. But never sell yourself short. If your cake is better than Joe Bob's Bakery then you charge more than Joe Bob. How much of a profit do you need to show in order for you to find it worth your time? There's not a simple answer. And every area is different. Just ask yourself if you want to make a whole lot of cakes for a little money, or fewer cakes for a whole lot more money.
You might also check out the tons of threads on this subject on CC. You'll find lots of different opinions. Good luck!
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KitchenKat Posted 19 May 2010 , 6:07am
post #4 of 6
Quote:
Originally Posted by Adevag

Just read the thread about how much you charge per slice. And I was wondering how much one serving of cake costs you to make? (approx.)
I am just a hobby baker but am hoping that in 5-10 years ... could open something from home......But when I make a cake and ONLY including costs of ingredients and support supplies, it ends up being $2/slice.
I know I choose ingredients with a cost that is above average, but still, how much is normal for a serving to cost?




Hats off to you for figuring out your costs. Truth is there is no such thing as "normal" or average. Comparing the costs of your cake to another is comparing apples and oranges. So many factors come into play: where you source your ingredients, your location, the quality you use vs the quality others use, sales taxes on items you've purchased, your volume of production, etc....

If your cake is about $2 a slice then it's $2 a slice. At the moment I've scaled back on making cakes and accept only a few orders a month. My costs are much higher because I purchase my ingredients and supplies retail and use a lot of mail order & imported items. When I had a bakeshop and was purchasing in bulk my costs were way lower.

My bottomline: As long as I know my cost, I figure out how much I should sell.

indydebi Posted 19 May 2010 , 6:34am
post #5 of 6

And are you asking for the actual cost, which includes payroll, payroll taxes, insurance (property, liability, vehicle), utilities, business loan and/or credit card expenses, banking expenses (ATM fees, cost of checks), postage, printer and computer expenses (paper, ink), advertising expense (website, biz cards, flyers), business memberships (chamber of commerce, networking groups, professional orgz's), building expense (rent .... and even if you work out of your home, there is a cost to that, that is too long to go into here), misc supplies that are expensed out, your non-baking time (traveling to pick up supplies, consultation appts, paperwork ... oh boy the paperwork!), and probably a whole bunch of other stuff I can't think of.

Or are you asking just for the cost-per-slice of the ingredients, which is the SMALLEST part of the costing equation?

jewelsq Posted 19 May 2010 , 1:13pm
post #6 of 6

Deb,
I love you. I think you should hear this, on this forum, at least once per day.

Not only do I learn new things from you all the time, but you help strengthen my backbone and most importantly, you take the time and energy to put into words what my "full-of-business-growing-pains-thankGod" body cannot.

Today I am bone-weary, but leave here feeling a bit more refreshed. Thanks cake friends.

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